Nvidia's Datacenter And Gaming Strengths Keep Analyst Upbeat About The Stock

Nvidia's Datacenter And Gaming Strengths Keep Analyst Upbeat About The Stock
  • Wells Fargo analyst Aaron Rakers reiterated Overweight on Nvidia Corp NVDA with a $250 price target.
  • Given the recent strength in shares of NVDA, he recommends a wait-and-see stance on NVDA’s upcoming F3Q23 results. 
  • Rakers re-rating reflected the deepening platform growth thesis on NVDA with a greater investor focus on Datacenter and Gaming.
  • Investors should focus on Datacenter with positive recent demand data points. NVDA’s H100 ramp and pricing uplift is a key focus. 
  • NVDA’s views on offsetting the ~$400 million impact from U.S. export controls on A100 shipments into China and confidence in the ability to ship recently introduced A800 will also be a key topic of discussion. 
  • Rakers expects F3Q23 results or a tempered F4Q23 guide will provide investor confidence in a Gaming bottom if NVDA reiterates sell-through demand. 
  • A premium multiple for NVIDIA is warranted given what he believes is a multiyear strong competitive positioning for data center growth driven by cloud and AI, gaming, next-generation autonomous vehicle applications, and an expanding ecosystem of products and applications (e.g., Omniverse)
  • Price Action: NVDA shares traded higher by 1.09% at $165.06 on the last check Monday.

Posted In: BriefsNewsPrice TargetReiterationAnalyst RatingsTech